Business rates in detail

NNDR pooling

National non-domestic rates, or business rates, are collected by local authorities in various ways.

Those who occupy non-domestic property contribute towards the cost of local services. Except in the City of London where special arrangements apply, the rates are pooled by central government and redistributed to local authorities according to the number of people living in the area. The money, together with revenue from council tax payers, revenue support grant provided by the government and certain other sums, is used to pay for the services provided by your local authority and other local authorities in your area.

Rates are usually payable by the occupier of non-domestic property. This will normally be either the owner-occupier or the leaseholder of the property. If a property is empty, the owner or leaseholder pays – at a reduced rate.

If you offer bed and breakfast accommodation in your own home to six people or less, you are exempt from non-domestic rates provided that the bed and breakfast use is subsidiary to the residential use. Timeshare units are non-domestic.